A&P Receives $490 Million Commitment to Sponsor Plan of Reorganization
November 03 2011 - 6:39PM
Business Wire
The Great Atlantic & Pacific Tea Company, Inc. (A&P)
today announced it has entered into an agreement to receive $490
million of debt and equity financing from private investors
comprised of The Yucaipa Companies LLC, Mount Kellett Capital
Management LP and investment funds managed by Goldman Sachs Asset
Management, L.P. The agreement is subject to approval of the U.S.
Bankruptcy Court for the Southern District of New York.
The agreement with these investors will enable A&P to
complete the restructuring of its balance sheet and emerge from
Chapter 11 as a private entity in early 2012. The investment will
form the basis of A&P’s plan of reorganization, which the
Company anticipates filing prior to November 14.
“This investment commitment is a very important step in
A&P’s financial and operational turnaround,” said A&P’s
President and Chief Executive Officer Sam Martin. “It positions us
for a bright future with solid financial backing from sophisticated
investors who know our company and industry well, and who also
share our vision for A&P’s future.”
Mr. Martin continued: “We have been working diligently over the
last year to execute a successful turnaround at A&P by
enhancing the value and in-store experience we provide to our
customers and by successfully driving substantial efficiencies
across our operations and supply chain to reduce our cost
structure. Going forward, these investors are committed to
supporting further operational and service improvements. With this
fresh capital investment and the Court’s approval of our plan of
reorganization, we anticipate emerging from Chapter 11 early next
year in a much stronger competitive and financial position.”
Following the closing of the transaction and the Company’s
emergence from Chapter 11, A&P’s current Board of Directors
will be dissolved, and a new Board of Directors will be appointed
in accordance with the terms of the plan of reorganization.
During the Company’s exit process, A&P intends to continue
to operate its stores normally with the excellent products and
service customers expect.
A&P and its subsidiaries filed voluntary Chapter 11
petitions on December 12, 2010.
About A&P
Founded in 1859, A&P is one of the nation's first
supermarket chains. The Company operates 336 stores in seven states
under the following trade names: A&P, Waldbaum's, Pathmark,
Best Cellars, The Food Emporium, Super Foodmart, Superfresh and
Food Basics.